A brief history of the stock market might tell you that the world's first stock exchange was in Italy or in Egypt or even in France, but no matter where they originated, the concept of a place to trade stocks and bonds has taken firm root and stock exchanges are now the cornerstone of our financial marketplace.

The first American stock exchange was established in 1792 in New York at the intersection of Wall Street and Bond Street and it continues to be there today, having grown into one of the world's most influential stock markets. It is aptly called the New York Stock Exchange.

A brief history of stock market trading will show that the 1800s were a time of great innovation and growth for the stock market. It was in this century that government bonds, insurance and bank stocks started actively trading. It was also during this time that street trading was prohibited and the NYSE found a home on Wall Street in a building of its own. Specialists were installed at particular locations on the trading floor to facilitate stock trade.

The 1900s were the time of the Industrial Revolution and saw much growth and expansion in the stock markets and their associated regulatory agencies. The Federal Reserve was set up to regulate the banking structure of the nation and New York gained popularity as the world's financial capital supplanting London as the previous financial hub.

The 1900s also saw the rise of speculators in a secondary trading market. Eventually this century was witness to one of the greatest stock market crashes in history, where stocks plunged and the Dow hit rock bottom by decreasing 89% in the period from 1929- 1932. This period immediately following the stock market crash was called The Great Depression because it saw many people lose their savings, lose their jobs and and some even lose their lives.

The stock market crash brought about much-needed regulatory changes into the stock market. The result was the passing of the Securities and Exchange Act which saw the formation of the Securities and Exchange Commission (SEC). The SEC is responsible for helping to ensure that such a crash never happens again by closely monitoring and regulating trading practices and ensuring that companies offer all relevant disclosure to the public at the time of going public.

Today there are a lot of new initiatives taken by the NYSE and other American exchanges such as a paperless office, women on the trading floor, real time stock tickers on CNN-FN and CNBC, an updated technology plan for the trading floor, global indexes, and representative offices around the world.

Beginner investors can learn a lot about the stock market by reading this and other related items outlining the brief history of stock market buoyancy and crashes - this will in turn help them understand what powers a bull or bear market and how to spot one coming like the financial pros do.